Answers · Deductions, assets & depreciation
Can a Business Deduct Accounting and Bookkeeping Fees?
Routine accounting, bookkeeping and tax-preparation fees for a business are generally deductible under §162; transaction-specific fees can be capitalized.
How it works
The rule, and what it turns on.
Monthly bookkeeping differs from acquisition due diligence or entity-formation costs.
Example
$500 monthly bookkeeping retainer is generally operating professional expense.
Common mistakes
What we see go wrong, and what we do instead.
- Combining capital transaction fees with ordinary accounting.
A better approach
- Code professional fees by matter.
Authority
Where this comes from, so you can check it.
IRC §162(a) (ordinary and necessary trade or business expenses); IRC §262 (personal expenses generally nondeductible). IRC §§263(a), 263A and 168; Treas. Reg. §§1.263(a)-1 through -3; IRS Publication 946.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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